OK, here goes....I'm sorry.
Occasionally when I post and often when I make a comment on someone else's post, I refer to the fact that the financial situation in Canada is not as bad as it is in the U.S.
Well, today that has all changed. For the first time in Canadian history we steady-as-she-goes, practical, frugal, boring, conservative and formerly smug Canadians have a higher debt to income ration than those spendthrift, carefree, live for today Americans. Yup, it's true, according to my favourite newspaper, The National Post.
Sorry for the blurry shot but online they don't let you look at the paper for free so I could only capture a screenshot of the tiny front page from their website. But I can still read the headline of the article in the upper right corner:
"Nobody Wants to Crash this Debt Party."
We have a bit of a problem and no one wants to take the blame or step up and do anything about it. The Bank of Canada feels pressured to keep lending rates really really low due to the less than stable economic environment. Banks have been encouraged to ease up on lending restrictions because more and more $$ needs to be injected into the economy so that manufacturers can keep on manufacturing. And the average Joe keeps borrowing more and more because hey - it's almost fricking free money! Let's make hay while the sun shines!! Last year's car - yuck - let's get a new one with ALL the options! Yes, I really really need 15 pairs of designer boots - baby it's cold outside! Make a meal for supper - why? when there are a hundred different restaurants out there struggling to keep afloat?? We're spending for the economy people!! We're patriotic!! We're STUPID!!!
I'm so embarrassed. I'm so disgusted. I'm so fed up.
Why don't people realize that when interest rates go back up..and they WILL go back up.. they won't be able to afford their payments?? Huh?? All of a sudden I don't feel so good...there's trouble ahead...the recession was nothing compared to what's coming...prepare yourself.